This content was published on <\/p>\n
June 25, 2026 – 11:49\n<\/p>\n
(Bloomberg) \u2014 The Swiss government\u2019s plan to make UBS Group AG hold significantly more capital was praised wholeheartedly by the International Monetary Fund.<\/p>\n
In remarks on its annual assessment of the Swiss economy, mission chief James Walsh said Thursday that the fund \u201cstrongly\u201d supports the government\u2019s proposal to require the bank to fully back foreign units in high-quality, so-called CET1 capital at its parent entity.<\/p>\n
\u201cCET1 is the highest-quality form of capital,\u201d he said. \u201cIt is the best way to improve confidence in the market, and the best way to insulate Swiss taxpayers from potential fiscal losses.\u201d<\/p>\n
The government\u2019s plan is currently making its way through parliament, with a final vote expected not before next year. Lawmakers are pondering whether to water down the required capital backing, Bloomberg has reported.<\/p>\n
In a statement, the fund added that the proposal is \u201ctargeted, commendable, and in line with recommendations\u201d in the IMF\u2019s Financial Sector Assessment Program.<\/p>\n
\u201cOngoing increases\u201d in the staffing of financial regulator Finma \u201cand proposed increases to its powers are welcome\u201d it added in its statement.<\/p>\n
\u201cThis includes enabling Finma to fully mandate and oversee external audit, and to further limit suspension of enforcement of Finma decisions during legal appeals,\u201d the fund said.<\/p>\n
The IMF also said:<\/p>\n
\u201cThe SNB\u2019s new Extended Liquidity Facility, to be introduced in 2027, will enhance the safety net, and final approval of the long-standing proposal to fund a public backstop would further reinforce stability.\u201d \u201cThe macroprudential framework and toolkit should be strengthened to address rising systemic risks.\u201d \u201cWith the sectoral countercyclical capital buffer (SCCyB) already fully deployed, new measures, such as borrower-based measures that target affordability, a higher limit on the SCCyB, or higher risk weights could help contain vulnerabilities.\u201d \u201cComplementary policies to streamline approvals and ease permitting would facilitate construction, reducing pressure on real estate markets.\u201d \u00a92026 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"This content was published on June 25, 2026 – 11:49 (Bloomberg) \u2014 The Swiss government\u2019s plan to make…\n","protected":false},"author":2,"featured_media":92020,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[1990,1991,223],"class_list":["post-92019","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-business-general","tag-ticker","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116811112501575856","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/92019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=92019"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/92019\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/92020"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=92019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=92019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=92019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}